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Finding Gold
The 3 Cs of Credibility
By Michael Lovas
June 1, 2007
Professional Credibility is one of the most elusive and difficult qualities to grasp. In fact, it's so elusive that very few people can even describe it. I've been studying and creating credibility strategies since 1991. Through those sixteen years, I've also learned what Credibility is NOT. This last point is a real eye-popper. Let me explain.
A couple of years ago, I was first in line to do a short "dog and pony show" presentation on credibility marketing at a sales training conference. I was asked specifically to talk about our book publishing program. Several other people were there to promote their own products. I explained, "The financial industry is based on credibility. Your success is based on your own credibility. If you want greater success, the key is to increase your credibility. The fast track to greater credibility is getting a book published."
Immediately following my presentation, every one of the other speakers made exactly the same claim. According to them, direct mail is the fast track to credibility. Website design is the fast track to credibility. Generic newsletters are the fast track to credibility. Sales training is the fast track to credibility. An annuity is the fast track to credibility.
See the trend? None of those things do squat for your credibility. Worse, in the case of sales training, it could actually damage any credibility you might already have.
Yes, this is an industry based on credibility, but it's also an industry over-populated by "Me Too!" vendors. Advisors are always sending me articles by other writers and consultants who are claiming to be the new expert on credibility marketing. I often see phrases that look remarkably like ones I wrote ten years ago.
I tell you this simply to give you the heads-up. Pay attention to the trainers, coaches and consultants who are claiming to know anything about credibility. Chances are, they don't understand it. I wish they did; it would help our industry. But my experience is, they don't have a clue.
If you want to raise the level of your success, it's a safe bet that you'll need coaching and training. The bad news for you is, many of the people doing that in the industry are not prepared to really help you. The good news for you is that there is a pretty simple formula you can use to figure out if a vendor, coach, trainer or consultant is qualified to help you gain greater credibility.
What is credibility and how can you get it?
Let's start to answer this question by taking a look at a few facts about Credibility:
- Credibility is the result of a formula that (like magic) causes people to trust you.
- Fulfill the requirements of the formula and people will follow your recommendations.
- Credibility is NOT traditional marketing.
- The formula is: Competence + Character + Consistency = Credibility
The 3 Cs of Credibility — and what that means to you:
The formula that brings credibility to financial advisors is cumulative. If you only achieve one C, you might achieve some credibility, but you probably won't be able to sustain it. If you prove that you also possess one or both of the other levels, you'll see greater credibility and realize the resulting increase in sustained success.
Competence.
Every IMO claims to provide help with product training. Doesn't that help with Competence? Yes, but knowing the inner workings of many IMOs, I can tell you that
very few of them can take you beyond competence in selling only their product. That is very different from actual competence in solving anyone's real-life problems.
Credibility Tip 1. Credibility through competence demands that you understand, empathize and sympathize with your client. Short questions that display your understanding of the client's situation help build your credibility. You want the client to think, "Gosh, this guy really understands my situation." Unfortunately, most of the time the client thinks, "Gosh, this guy just wants to sell me the product of the month."
A situation we see over and over again is reps in their first few years of business looking to sell a limited product line. For example, you might see everyone as needing an annuity or long term care or even wealth management. If you enter the room as a "salesman," you'll probably see a lot of resistance. That's because your prospects can sense that your agenda is to sell, rather than actually solve their problems. Not much competence there. Oh sure, you might be a competent salesman, but that's got zero to do with credibility. Making a sale is about you. It's not about the client.
Credibility Tip 2. Can you be less than expert, and still be competent? Yes, but... It depends on your strategic alliances and how well you use them. Bruce Wright intones the message of "Interdependence" at his seminars. In other words, form a partnership with someone who has expertise that you don't. When you can use someone else's expertise on the behalf of your clients, you're more competent — if you facilitate the advice and service.
So, how can you prove your competence? In recent years, we've created a lot of white papers for our clients. I'd like to tell you about one. His name is Jeff, and he uses his white paper brilliantly.
Jeff provides alternative investments to his clients, namely he helps his clients buy investment real estate inside their IRA accounts. His white paper explains the process and also shows a graphic of the team required to complete this type of complicated purchase, then maintain the investment.
The point of my telling you about Jeff is to illustrate that a white paper is like a book. Your white paper can show you as an unquestioned expert in your specific field. If Jeff tried to do business without the white paper, he would immediately bump into walls of resistance. And, he did before we wrote his white paper. Smart people read. Smart advisors provide them with targeted, appropriate material to read. This is how competence is turned into credibility!
Character.
Your credibility is always filtered through your character. Remember all the politicians who claim one value but behave in a contrary way. That is the opposite of
character. Financial advisors (like anyone else) can fall into that trap too.
Credibility Tip 3. Your success is directly tied to your values. When you keep your values in mind, you stay on track and work more effectively. Your values are also tied to your credibility. However, they can also invite problems.
Nearly every person I've ever met lists two values: family and honesty. Let's say those are your values, and your goal is to make a good living to take care of your family. Would you sell a product that was less than optimum in order to make the commission? Would you hide the no-load product, even though it was clearly the best choice for that client? Would you make promises of personal service to get a sale, knowing that you won't provide that service?
To make the wrong decision in any of those cases would be to sacrifice one value for a lesser one. Doing that would be evidence that your behavior was incongruent (or confused). And, that would mean that you had no credibility.
In their song "Golden Ribbons" from the mid-70s, Kenny Loggins and Jim Messina sang, "What does it avail a man to gain a fortune and lose his soul?" That says it.
The second aspect of Character comes from a separate formula. It's very simple:
Of all the training programs and speeches I've delivered over the seventeen years I've been speaking in public, my favorite is titled, "Unsung Heroes." In it, I explain that the above formula as the clear path to heroism — if it is applied on behalf of someone else. So, the full formula is: Values X Action = Heroism.
Want your children to see you as a hero? That's the formula. Want your parents to see you as a hero? Ditto. Want your clients to revere you? Ditto.
In "Unsung Heroes" I tell the story of my experience as a Ride Captain in the Patriot Guard Riders ( www.patriotguard.org ). This is a group of people, mainly military veterans who ride motorcycles. The group attends funerals for our men and women killed in Iraq and Afghanistan. We in the Patriot Guard Riders do not seek headlines or praise. We do what we do because it is the right thing to do. We are taking action on one of our most important values.
Many of us are vets from the Vietnam war. We were treated very badly by our country forty years ago, when we returned or got out of the service. And, we swore that no one who had the guts to wear the uniform would ever have to endure that treatment again. We attend their funerals to provide support and security for their surviving families. We honor the fallen hero and show respect to the surviving family. We display to the family that their son or daughter or parent is remembered as a hero.
Credibility Tip 4. I tell you about the Patriot Guard Riders to illustrate a simple way you can take action on a value — if it's your value. Thing is, many people don't really know what their values are. If that's you, here are two tips for you:
- Seek some coaching. You want someone who could help you understand your life purpose and your business purpose. You want someone who understands how your mind is configured to know if your business model is congruent with your values. And, if not, how to adjust to bring greater peace to you and still allow you to prosper.
- Attend just one Mission with the Patriot Guard Riders. You do not have to ride a bike; you can drive. You don't have to be a veteran. The only requirement is respect. You just show up. We'll give you a flag to hold and you'll stand silently in a flag line. During those long moments of silence, you'll have plenty of time to think about the meaning of your life and what you stand for.
In Conclusion. Some people call me the "Father of Credibility Marketing." That's probably true considering when I first started writing about credibility, coaching it, and creating credibility strategies. However, credibility marketing is only one piece of the formula. I like to ask how credibility marketing fits into the bigger picture. Many advisors don't have a bigger picture. For them, credibility is just a gimmick. What is it for you?
Your Reward. Simple. If you want to save about $10,000 on a credibility marketing strategy, give me a call.
MICHAEL LOVAS is the author of ten books, three columns, and a thousand articles on Professional Credibility and the Psychology of Communication in the financial industry. He's the co-founder of AboutPeople and the founder of Credibility Marketing.
Michael speaks at conferences and seminars in Canada and the US. He is an inspiring trainer and coach who helps advisors improve their businesses. He holds three prestigious certifications: Licensed Master Practitioner of Neuro-linguistic Programming (NLP), Licensed Trainer of NLP; and Clinical Hypnotherapist. They make Michael an expert at helping financial professionals succeed at a higher level by building more meaningful business relationships.
AboutPeople Books:
- (NEW) Questions Are the Answer! - A guide for using questions effectively in sales conversations
- (NEW) Axis of Influence! - How credibility & likeability intersect to drive success!
- (NEW) Words that Sell - The language of psychological marketing & selling
- Face Values - How to read people and connect with them in less than 3 minutes!
- The Boomer Report - The financial advisor's guide to understanding the boomer mind
- Presentation Magic - How to gain a psychological advantage in your seminars and sales presentations
- The 5 Levels of Rapport - How to create a meaningful connection with people who are important to you
- Magnetic Connections - Consultative selling for financial professionals
- IDENTITY - How to create and deliver the most important statement of your business life
- Inside the Mind of the Senior Market
- Beyond Wave Marketing - How to add credibility to your relationship marketing
Find AboutPeople books at: www.aboutpeople.com
Michael Lovas, C.Ht.
AboutPeople
(509) 465-5599
1503 E. Riverview Dr.
Colbert, WA 99005
www.aboutpeople.com
